How do I include my material cost to deductions

2 replies
82 views

I spent 13000 on materials. How do I deduct that

Mike9241Answer

Level 15

Expert Reviewed

assuming this is not a hobby, and you are self-employed. file schedule C and if you don't account for inventory per schedule C instructions

Line 22
In most cases, you can deduct the cost of
materials and supplies only to the extent
you actually consumed and used them in
your business during the tax year (unless
you deducted them in a prior tax year).
However, if you had incidental materials
and supplies on hand for which you kept
no inventories or records of use, you can
deduct the cost of those you actually
purchased during the tax year, provided
that method clearly reflects income.

if you account for inventories, you will use part III of schedule C and either line 36 or 38

Mike9241

Answer

Level 15

Expert Reviewed

assuming this is not a hobby, and you are self-employed. file schedule C and if you don't account for inventory per schedule C instructions

if you account for inventories, you will use part III of schedule C and either line 36 or 38

Mike9241

VolvoGirl

Level 15

Enter materials and parts under Supplies. Or you can enter them under Other Miscellaneous Expenses on Schedule C lPart V Other Expenses line 48.

You can enter 1099NEC or cash Self Employment Income into Online Deluxe but if you have any expenses you will have to upgrade to the Premium version or use any of the Desktop programs.

Where to enter expenses in the Online Premium version

https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/enter-self-employment-business-expenses-like-home/L1k6HJY4A_US_en_US